Government Relations

Offset agreements are commitments by an exporter to a reciprocal purchase obligation. The reciprocal purchase is generally related to the exported product.

The defense industry defines an offset as an industrial compensation practice required as a condition of purchase, in either government-to- government or commercial sales of defense articles or defense services as specified by the International Traffic in Arms Regulations (ITAR). Offsets are often comprised of component purchases, technology transfers, investments, training and research programs, and counter purchases.